Schroder rival opposes reforms

GERMANY: Chancellor Gerhard Schröder came under new pressure over his reform programme last night after his political nemesis…

GERMANY: Chancellor Gerhard Schröder came under new pressure over his reform programme last night after his political nemesis, former finance minister Mr Oskar Lafontaine, lead Germany's latest and largest anti-reform protest.

Mr Lafontaine told over 15,000 protesters yesterday in Leipzig, centre of the 1989 demonstrations that brought down East Germany, that the government's economic reforms were inherently flawed, and overburdened the weakest in society.

"What's the point of telling the unemployed that more pressure will be put on them to take jobs when there is no work to be had?" said Mr Lafontaine, whose left-wing economic policies as German finance minister led the Sun to dub him "the most dangerous man in Europe".

But not everyone in Leipzig was pleased to see Mr Lafontaine, who was hit with an egg and booed when he arrived.

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That is possibly the only thing Mr Lafontaine still has in common with his one-time ally turned arch-enemy Mr Schröder.

Mr Schröder was also pelted with eggs and jeered during visits last week to eastern German towns with unemployment rates of over 20 per cent, twice the national average.

"If we don't restructure the social welfare \ it will implode. I'm firmly convinced Germany needs this reform process, and I will not back down," said Mr Schröder at the weekend.

Over 70,000 people have marched in cities around Germany each Monday for the last five weeks to protest against the government's reform programme, known as Agenda 2010.

Central to their protest are plans from January to cut dole payments and subject it to a means test while forcing the unemployed to take up low-paid work.

However there are signs that the Social Democratic Party (SPD) has begun to heed the weekly Monday protests.

Party leaders meeting at the weekend agreed not to introduce any further social or economic reforms ahead of the 2006 election. Some reforms already under way, such as plans for a radical overhaul of the healthcare system, will also be put on hold.

Mr Lafontaine says he will back the foundation of a new left-wing party ahead of the 2006 general election although he remains an SPD member. SPD leaders said yesterday they had no plans to expel him, saying they "didn't want to create a martyr".

Mr Schröder, who has until now made no comment about the return of Mr Lafontaine, said at the weekend: "Everyone deserves the same chance to discredit themselves."

Derek Scally

Derek Scally

Derek Scally is an Irish Times journalist based in Berlin